Prices in many parts of Italy are still low enough to allow many foreign buyers to purchase outright. Indeed, the majority (and perhaps all) of the British residents of my particular Ligurian village have done exactly that.

And if you are also in the fortunate position to make a full or partial cash purchase then your priority should almost certainly be to contact a professional currency conversion company, like Smart Currency Exchange, to ensure you get the most bang for your buck when transferring funds overseas. To get in contact with Smart Currency Exchange go to:  http://www.smartcurrencyexchange.com/Currency_quote.aspx

When I found the apartment I wanted to buy in September 2010, I knew I would be transferring funds from the UK (as opposed from my then country of residence – France) in order to make the purchase as the sale of my French property was still a long way from completion. So when the Italian sale was about to go through in March 2011, I made sure to contact Smart Currency to get the best possible rate of exchange.

In order for them to transfer the funds, I first had to open an Italian bank account: which I did as soon as I had obtained my residency in the country – thus lowering both bank charges and taxes on my new property.

On the day of signing the contract, I was able to pay the full purchase price via a bank transfer, and the notary fees with a simple cheque. The remaining funds are taken out from my account by cheque, transfer or in cash to pay for the renovation costs as and when I am invoiced for them.

If you would prefer to take out a mortgage to cover the purchase, then you have several options open to you:

- A sterling-based mortgage: by contacting your bank or an independent mortgage broker you can find out what options are available to you with regards to taking out a mortgage on an Italian-based property.

- A mortgage with an Italian bank: most Italian banks are happy to arrange mortgages to non-residents, although banking costs and taxes will almost certainly be higher than for residents. There will be certain costs involved with such a transaction, such as mortgage application fee, mortgage broker fee, mortgage taxes, a property value survey, notary fees, and insurance, as well as translation/interpreter costs if you do not speak Italian. However, if there is an existing mortgage on the property, you may also be able to take it over at no cost no fee.

Please note that if you intend to repay a Euro mortgage in Sterling, you will always be at the mercy of fluctuating exchange rates unless you have fixed a rate of exchange with a currency broker ahead of time.

- Off-shore mortgage: it may be more convenient for you to follow this course of action, in which case an independent mortgage advisor or a financial advisor would be best placed to assist.

Whatever your plans for financing your property, it is essential that you take the time to consult professionals who can guide you through the process in order to best guard your interests:

- A financial or mortgage advisor to help you decide which will be the best and safest way for you to finance your purchase.

- A solicitor to ensure that you know exactly what will be included in the purchase price.

However you decide to finance your purchase in Italy, as with everything else, the most important aspect of your decision-making process should be the endless search for information. Only with all the relevant facts and figures at your fingertips can you make informed decisions on how will be the wisest way to proceed.

And please make sure, if your Italian is not up to scratch, that you have a fluent speaker – either friend or professional translator – explaining every small detail involved to you.

Good Luck!